Markets are off to a solid start in 2023. Global equities (MSCI All Country World Index) have gained 5.1% year-to-date, with Europe’s Stoxx 50 climbing 8.6% and the S&P 500 rising a more modest 3.5%. The big question now is whether the rally will prove durable, economists at UBS report.

S&P 500 price targets are 3,700 and 4,000 for June and December

“We don't see much scope for markets to rally in the near term, especially given our outlook for continued pressure on corporate profit growth.”

“Our June and December S&P 500 price targets are 3,700 and 4,000, respectively, versus 3,972 at the end of last week.”